The Deputy Minister of Finance, Mr. Victor Selormey, has called on banks to slash their lending rates to encourage borrowing, especially by the private sector.

He said the banks should not perceive themselves only as "money creators' but also as the engine of growth of the economy with an obligation of complementing government's efforts at solving the economic constraints in the country.

The Deputy Minister said this in a speech read on his behalf to commission the Tema branch of the International Commercial Bank (ICB) on Friday.

The ICB is a medium-sized bank jointly established in November 1996 by the governments of Ghana and Malaysia. It currently operates in 10 countries, including Ghana, Mauritius, Tanzania and Malaysia.

Mr. Selormey said in this era of privatisation and economic difficulties, the government can no longer afford to bail out banks that perform below average, adding that "banks should face the challenge of meeting globally-accepted standards."

He advised banks to introduce flexible banking schemes, services and products to reduce inflation and improve the already precarious economic condition of the country.

Mr. Selormey urged the banks to, as a matter of priority, provide quality services to the public so as to guarantee their survival and ensure value for money.

He further urged banks to strike a balance between their profit motives and meeting social responsibilities and commended the ICB for sponsoring the Bawjiase Orphanage.

The Head of Banking Supervision of the Bank of Ghana, Mr. E. Asiedu-Mante, reiterated the call on banks to live up to expectation, saying the Central Bank will not tolerate any bank that cannot keep its head above water.

"The Bank of Ghana will not hesitate to liquidate any incompetent banks and give the mantle to more competent ones to operate." He called on banks to innovate financial products and design credit schemes appropriate for small medium-tem enterprise (SMEs) in the country.

He advised banks to prepare themselves to face the challenges of technological advancement, refined marketing strategies and managerial competence, which he said are the backdrop of every economic venture in modern times.

The Chief Executive Officer of ICB, Ghana, Mr. George Koshy, explained that the location of the bank in Tema is to satisfy the needs of the vast manufacturing and business community.

He said to ensure growth of the SMEs, the ICB does not charge Commission on Turnover for current accounts and also offers very attractive interest and lending rates for the business community.

The Tema Municipal Chief Executive, Mr. Nii Armah Ashietey, described the location of the bank in Tema as timely in view of the fact that banking services in the municipality have reduced drastically following the liquidation of the Bank for Housing and Construction and Co-operative Bank.